External Shocks to the Global Economy对全球经济的外部冲击.pptVIP

External Shocks to the Global Economy External Shocks to the Global Economy Energy Costs Energy Costs Rising oil prices affect many businesses worldwide Change the nature of demand (e.g. off-road vehicles) Potential to generate inflationary pressures Possibility of triggering global economic slowdown Energy costs How does rising energy costs effect us? How does effect you, the student? Famine Famine Succession of poor harvests can lead to famine conditions Attempts to grow food to meet increasing shortages can lead to environmental degradation Impact on global economy of dealing with aid problems and the social issues that come with it – refugees, for example Lack of access to world markets by developing countries Share Prices Share Prices Share Prices reflect the expectation of future financial performance A belief that prices may fall in any area of the world is sufficient to trigger global market changes The share market is now 24-7 Share Prices What products are effected by this trend? The answer is probably in your pocket. Economic Policies Economic Policies Interest rate changes anticipated across the world The global capital market means such changes can have significant impacts Ben Bernanke, and previously Allen Greenspan – Chairman of the Federal Reserve – seen as being one of the most powerful figures in the world because of the influence he has on US economic policy Expansionary policies in major economies can influence smaller economies around the world Interest Rates Do the math? If you buy a home for $200,000 with an interest rate of 4%, what are the payments per month over 360 months? If you buy a $20,000 car, with an interest rate of 10%, what are that payments per month over 60 months? Domestic Policies Trade Protectionism – for example, the US tariff on steel Regulation – impacts on trade patterns Trade Blocs – NAFTA, EU Uncertainty Uncertainty One of the most significant of the factors affecting the global economy Business does not lik